Analisis pengaruh jaringan politik terhadap cost of debt perusahaan publik di Bursa Efek Indonesia periode 2006-2011

Deskripsi

This research aims to investigate the impact of political connection to the cost of debt of Indonesian listed companies. The main finding of this research includes a significant positive relation between politically connected firms and their cost of debt. The findings of this research support the existing theory that politically connected firms tend to be inefficient. This inefficiency affect firms performance, and increase the risk perception of creditors. We also find that politically connected firms have a significantly (1) Higher extent of leverage, (2) Lower growth rate, (3) Higher likelihood of reporting a loss, (4) Higher likelihood of having a negative equity.Ada tabel